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North Carolina fuel tax rate change, July 2016


 The North Carolina motor fuels tax rate dropped on July 1, 2016.

The motor fuels tax for fuel sold in North Carolina is in flux due to the enactment of SB 20 in 2015. The tax applies to alternative fuels, diesel, and gasoline, and is included in the retail price paid by consumers at the pump.

The rate was a flat 35 cents per gallon for the period January 1, 2016 through June 30, 2016. It drops to a flat 34 cents per gallon for the period July 1 – December 31, 2016. Beginning January 1, 2017, it’s a flat rate of 34 cents per gallon, “multiplied by a percentage.” Beginning January 1, 2018, it’s “the amount for the preceding calendar year, multiplied by a percentage.”

The percentage referenced is 100%, plus or minus the sum of the following:

  • The percentage change in population for the applicable calendar year, multiplied by 75%
  • The annual percentage change in the Consumer Price Index for All Urban Consumers, multiplied by 25%.

For additional details, please see the text of SB 20.

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photo credit: Fuel Title via photopin (license)


Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.